Social and Ethics Committee report

The Social and Ethics Committee's responsibilities encompass monitoring and regulating the Group's social and ethics performance, and its impact on its stakeholders.

Although management is tasked with overseeing the day-to-day operational sustainability of their respective areas of business, and reporting thereon to the Social and Ethics Committee, the Board remains ultimately responsible for the Group's ethics performance, adherence to human rights principles and sustainability. The committee was established under the terms of the Companies Act.

The continued enhancement of the Group's ethical culture is a priority for the Board (through the Social and Ethics Committee and other relevant committees) and executive management. This takes on greater significance against the backdrop of recent corporate failures, the challenging macroeconomic environment and the ongoing fight against corruption and fraud.

The Social and Ethics Committee operates within defined terms of reference as set out in its charter, the Companies Act and the authority granted to it by the Board. Broadly, the committee is tasked with overseeing the good corporate citizenship of the Group on behalf of the Board. In conjunction with the Board, the Social and Ethics Committee has applied the principles of King IV throughout the reporting period.

During FY24 and to date, the following were some key activities and outcomes from the Social and Ethics Committee:

• Monitored the employee annual Code of Conduct and anti-bribery and corruption training. In addition, the Committee monitored compliance with the Group's Code of Conduct to ensure that robust controls remain in place. This included considering the effectiveness of the Group's Code of Conduct, which was amended during the reporting period, as well as effective management of the whistleblowing hotline.
• Monitored progress on employment equity in the South African subsidiaries, focusing on the subsidiary plans versus the Department of Labour targets. Monitored reports alleging discrimination and that decent working conditions prevailed in the Group.
• Ensured that any discrimination reported was investigated in terms of the Group's policies and guidelines.
• Oversaw the Broad-Based Black Economic Empowerment ("BBBEE") contributor status for the South African subsidiaries. WestconGroup SA retained Level 1 BBBEE contributor status; Logicalis SA also maintained its Level 1 rating and Datatec's combined South African entities were a Level 4 rating.
• Monitored the Group's standing in terms of the 10 principles of the United Nations Global Compact, through the letters of representation process.
• Requested internal audit to perform a health and safety maturity assessment for the Group during FY24. The internal audit procedures performed for the subsidiaries under review did not identify any non-compliance with local health and safety laws. There are management actions in progress which will ensure that the Group continues to enhance health and safety compliance in the Group. The Social and Ethics Committee will continue to monitor progress.
• Reviewed the Group's reports on health and safety incidents.
• Oversaw the Group's response to various climate change initiatives.
• Reviewed the Group's social investment and donations within the communities in which we operate. In addition, the Datatec policy is not to make any donations to politically exposed persons. Following a review of the procedures during FY24 and to date, the Social and Ethics Committee did not identify any non-compliance with the Datatec policy.

The committee will continue to guide the Group to ensure it does business responsibly and ethically. In FY25 and beyond, the committee will focus on the following key initiatives in addition to its other objectives.

• Oversee the Group's approach to climate change and target setting.
• Monitor employee wellbeing given the economic and social challenges.
• Oversee the enhancement of the culture of ethics and ethical leadership in the Group.
• Monitor the employment equity practices in the South African operations and non-discrimination in the Group.
• Oversee the continued support of youth employment and skills by the South African subsidiaries through learnerships and internships.
• Deepening ethics awareness and overseeing greater awareness by employees and third parties of the Group's anti-bribery and corruption hotline.
• Develop a consolidated strategy for Group social investment and donations.
• Oversee the Group's environmental and social strategy framework and ensure that the Group conducts business in a sustainable manner.

The Social and Ethics Committee examines the application of the Group's Code of Conduct which provides a framework of "how we do business" in an honest and ethical way across the Group. On an annual basis, the Group conducts Code of Conduct training and all employees are required to complete it. The committee reviews the reports from the subsidiaries relating to Code of Conduct and anti-bribery and corruption training. During the reporting period, the centralised whistleblowing hotlines operated effectively and efficiently. The Group-wide, centralised whistleblowing hotlines allow Code of Conduct and anti-bribery and corruption allegations to be reported centrally to the Group Chief Risk Officer ("CRO") and General Counsel, who in turn ensure that all complaints are reported to the Audit, Risk and Compliance Committee and the Social and Ethics Committee.

The committee also monitors the Group's application of BBBEE legislation in its South African operations and the promotion of equality and prevention of unfair discrimination throughout the global operations of Datatec. Furthermore, the committee oversees the Group's contribution to the development of communities in South Africa and beyond through the Datatec Educational and Technology Foundation and other local initiatives.

For more information on transformation and BBBEE, refer to BBBEE and transformation.

The committee draws matters relating to employment equity, BBBEE, corporate social investment ("CSI") and labour to the attention of the Board and reports on them to shareholders at the AGM.

No human rights incidents or those contrary to the 10 principles of the United Nations Global Compact were reported during FY24 and to date. The Group operations have robust supplier onboarding policies which they adhere to when conducting due diligence with new partners. These policies include, among other things, compliance with the Group's Code of Code and anti-bribery and corruption policies, to mitigate the risks associated with violations of human rights incidents. In South Africa, aspects such as prohibition of child labour, compulsory labour and discriminatory practices are monitored by the Department of Labour in addition to the committee. The Department of Labour conducts regular audits related to employment equity and labour laws. Subsidiaries operating in other jurisdictions adhere to the labour laws relevant to them and report on any major changes in labour law to the committee and the ARCC.

Health and safety reports are reviewed annually by the committee and at least quarterly at the subsidiary audit committees and risk forums. The Group operates in over 50 countries and subsidiaries keep abreast and comply with relevant health and safety legislation in the jurisdictions they operate in. The health, safety and wellbeing of our employees continue to remain a priority.

For more information on health and safety, refer to health and safety report.

SJ Davidson
Chair, Social and Ethics Committee

May 2024